Contractors Could Benefit from Government’s Weakened Stance

By 7. July 2017News

The government’s weakened state since the snap election stripped the Conservatives of their majority may have made Brexit negotiations more difficult, but there are some benefits. Namely, for UK contractors.

CEO of Independent Professionals and the Self Employed (IPSE), Chris Bryce, anticipates that the tories weakened stance will result in softer legislation concerning contractors, with some of the more controversial policies being put on the backburner for the time being.

“At the moment the Government’s agenda is going to have to be less ambitious than it would have otherwise been. It has already said that it will not pursue the NICs increase that was included in the last Budget, and any changes to dividend taxation may be shelved for now.

“Our sources are telling us that the Government will consider the Taylor Review very carefully before introducing any new legislation, which is important. The Government needs to tread carefully and avoid the wholesale adoption of any blind recommendations.”

Bryce states that, given recent political turmoil, it’s increasingly likely that the government will take on board advice from contractor organisations and advocates of the self-employed. If this were to happen, it could make for a far less volatile legislative landscape over the coming months, although Bryce warns that this is by no means a given.

“We must remember that the people at the head of Government haven’t changed, and taxation of the self-employed was high on its agenda. Losing the majority will likely mean it is less likely to pursue controversial measures. However, the tax gap hasn’t gone away, so we can expect to see some measures – though possibly more careful measures – in the next Budget.”The government’s weakened state since the snap election stripped the Conservatives of their majority may have made Brexit negotiations more difficult, but there are some benefits. Namely, for UK contractors. CEO of Independent Professionals and the Self Employed (IPSE), Chris Bryce, anticipates that the tories weakened stance will result in softer legislation concerning contractors, with some of the more controversial policies being put on the backburner for the time being. “At the moment the Government’s agenda is going to have to be less ambitious than it would have otherwise been. It has already said that it will not pursue the NICs increase that was included in the last Budget, and any changes to dividend taxation may be shelved for now. “Our sources are telling us that the Government will consider the Taylor Review very carefully before introducing any new legislation, which is important. The Government needs to tread carefully and avoid the wholesale adoption of any blind recommendations.” Bryce states that, given recent political turmoil, it’s increasingly likely that the government will take on board advice from contractor organisations and advocates of the self-employed. If this were to happen, it could make for a far less volatile legislative landscape over the coming months, although Bryce warns that this is by no means a given. “We must remember that the people at the head of Government haven’t changed, and taxation of the self-employed was high on its agenda. Losing the majority will likely mean it is less likely to pursue controversial measures. However, the tax gap hasn’t gone away, so we can expect to see some measures – though possibly more careful measures – in the next Budget.”

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